ACRE dividend – Ares Commercial Real Estate Faces Potential Dividend Cut and Rating Downgrade in 2024

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Ares Commercial Real ($NYSE:ACRE) Estate (ARES) is a publicly traded real estate investment trust (REIT) that provides debt, equity, and other commercial real estate financing solutions to middle-market companies. In recent news, it has been reported that Ares Commercial Real Estate may face a potential dividend cut and rating downgrade in 2024. The company has a strong balance sheet with significant cash reserves and very low debt levels, which is why the potential dividend cut and rating downgrade come as such a surprise. Ares Commercial Real Estate has been trying to increase its visibility in the market by actively participating in mergers and acquisitions, as well as investing in new projects.

The company is also expanding its loan portfolio with the goal of becoming a larger player in the commercial real estate space. Investors are advised to exercise caution when investing in Ares Commercial Real Estate in the months leading up to 2024. It is important for investors to stay informed on the company’s financial situation and make decisions based on the most up-to-date information available.

Dividends – ACRE dividend

ARES COMMERCIAL REAL ESTATE has been issuing annual dividends per share of 1.36, 1.32, and 1.32 USD over the last three years. With dividend yields of 12.88%, 9.57%, and 9.11%, respectively, the company has an average dividend yield of 10.52%. This could have a significant impact on their stock price and the dividends they offer. Therefore, investors should review the company’s performance before making any investments.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for ACRE. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for ACRE. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for ACRE. More…

Key Ratios Snapshot

Some of the financial key ratios for ACRE are shown below. More…

Price History

On Wednesday, ARES COMMERCIAL REAL ESTATE stock opened at $10.1 and closed at $10.0, down by 2.6% from it’s last closing price of 10.2. This is despite analysts predicting a dividend cut and a ratings downgrade from Moody’s for the company’s 2024 earnings release. The potential dividend cut has been a cause of concern for some investors, as the company has traditionally paid out a healthy dividend each year.

The potential ratings downgrade could also impact the company’s access to capital and put a strain on its balance sheet. As such, many investors are watching the situation closely to see if the company can turn things around in time to avoid these potential pitfalls. Live Quote…

Analysis

As GoodWhale, we conducted an analysis on ARES COMMERCIAL REAL ESTATE’s fundamentals. After running the Star Chart, we determined that ARES COMMERCIAL REAL ESTATE is classified as a ‘cow’, a type of company with a track record of paying out consistent and sustainable dividends. From our assessment, we determined that ARES COMMERCIAL REAL ESTATE is strong in terms of asset, dividend, and medium in growth and profitability. However, its health score of 3/10 indicates that it is less likely to pay off debt and fund future operations. This is something that investors should take into consideration when deciding whether or not to invest. More…

Peers

The company has a strong focus on providing financing for middle-market borrowers. Ares Commercial Real Estate Corp is a publicly traded company that is listed on the New York Stock Exchange. The company has a market capitalization of approximately $2.3 billion. Ares Commercial Real Estate Corp is headquartered in New York, New York. The company’s main competitors are TPG RE Finance Trust Inc, KKR Real Estate Finance Trust Inc, and ACRES Commercial Realty Corp.

– TPG RE Finance Trust Inc ($NYSE:TRTX)

TPG RE Finance Trust Inc has a market cap of 623.1M as of 2022. The company focuses on originating and acquiring first mortgage loans secured by properties located in the United States.

– KKR Real Estate Finance Trust Inc ($NYSE:KREF)

KKR Real Estate Finance Trust Inc. is a real estate finance company that originates, acquires, and manages a diversified portfolio of commercial mortgage loans, commercial mortgage-backed securities, and other commercial real estate-related debt investments. The company has a market cap of $1.15 billion as of 2022.

– ACRES Commercial Realty Corp ($NYSE:ACR)

Acres Commercial Realty Corp is a company that owns and operates commercial real estate properties. The company has a market capitalization of $79.25 million as of 2022. Acres Commercial Realty Corp’s primary business is the ownership and operation of office buildings, retail centers, and warehouses. The company’s portfolio is located in the United States and Canada.

Summary

Ares Commercial Real Estate (ACRE) is a publicly traded real estate finance company that focuses on providing commercial real estate loan origination and servicing. Recent analysis on the company has indicated that there is potential for a dividend cut to be incoming in 2024. This news has resulted in a downgrade of ACRE’s rating from BB to BB-. Although this news could be concerning to investors, some analysts believe that the company’s strong underwriting and origination capabilities, along with a healthy balance sheet, should help to offset the expected losses. Investors should take into account the potential risk of a dividend cut when considering whether to invest in ACRE.

However, despite the downgrade, ACRE still remains an attractive investment due to its strong position and robust portfolio of assets.